A futures contract differs from an option contract in that the holder of a futures contract has a right but not an obligation to settle on a particular date.

Question

Quizplus · Accepted Answer

An option is a contract that gives one party the right but not the obligation to buy or sell a particular asset or contract at an agreed price,with delivery at an agreed time or over an agreed period of time.The key characteristic of an option is the ability of the option purchaser to choose whether to exercise the option.

A Futures Contract Differs from an Option Contract in That